Dollar Hits 17-Month High Amid Inflation Fears and Eurozone Woes

The US dollar continued its three-week winning streak, reaching a 17-month high as investors sought safe-haven assets amidst concerns over inflation and French fiscal health.

A bond market rout on Thursday sent yields on benchmark US 10-year Treasuries to 5.344%, their highest since 2002, before stabilizing on Friday at 5.247%.

The euro fell to its lowest level since May 2025, trading at $1.1237, while the yen firmed up to 157.84 per US dollar after data showed Tokyo's annual core inflation accelerating in September.

Currency strategists attributed the dollar strength to a flight-to-safety move driven by European fiscal risk concerns, with investors seeking refuge in liquid and defensive sovereign markets.